MediaTek revenue falls
MediaTek Inc (聯發科), which supplies mobile handset chips to China Mobile Ltd (中國移動) and Xiaomi Corp (小米), yesterday reported falling revenue for last month because of fewer working days and the effects of the slow season. Revenue declined 44.62 percent to NT$9.67 billion (US$307.5 million) last month, compared with NT$17.45 billion in January, MediaTek said in a filing to the Taiwan Stock Exchange. The figure was 38.52 percent lower than the previous year’s NT$15.73 billion, its lowest level in nearly two years. That brought the Hsinchu-based chipmaker’s revenue for the first two months to NT$27.13 billion, down 5.04 percent from NT$28.58 billion the previous year.
Yulon Nissan shares surge
Yulon Nissan Motor Co (裕隆日產), which distributes Nissan and Infiniti cars, yesterday saw its shares surge 5.45 percent to NT$300 after Yulon Group (裕隆集團) said on Thursday that it aimed to increase total annual sales by 12 percent this year to NT$400 billion. The group also said on Thursday that China would remain the world’s top market this year with sales of 25 million passenger cars, while Taiwan could see total new vehicle sales top 420,000. The group aims to sell more than 280,000 cars this year in both Taiwan and China, a company statement said.
Formosa Plastics’ sales drop
Formosa Plastics Group (台塑集團), the nation’s largest industrial conglomerate, yesterday said the combined revenue of its four major units decreased 28.8 percent year-on-year and 7.8 percent month-on-month to NT$111.38 billion last month. While Formosa Petrochemical Corp (台塑石化) reported sales of NT$51.01 billion last month, up 2.9 percent from January amid rebounding crude oil prices, the other three units posted sliding sales due to lower utilization rates due to the Lunar New Year holiday. Formosa Plastics Corp (台塑), the group’s flagship company, reported the largest monthly decline in sales of 26 percent last month to NT$12.66 billion. It was followed by Nan Ya Plastics Corp’s (南亞塑膠) 14.7 percent decline to NT$23.32 billion and Formosa Chemicals & Fibre Corp’s (台灣化學纖維) 9.5 percent decline to NT$24.4 billion last month.
Epistar posts lower revenue
The nation’s largest LED chipmaker, Epistar Corp (晶元光電), yesterday reported monthly revenue of NT$1.86 billion (US$59.14 million) for last month, down 9.04 percent from the previous year’s NT$2.04 billion. Separately, Taiwan’s leading LED lighting and product supplier Everlight Electronics Co (億光電子), which is one of Epistar’s key customers, reported a 16.8 percent annual growth in sales to NT$2.2 billion last month. On a monthly basis, Epistar and Everlight posted sales declines of 22.82 percent and 13.38 percent respectively. In the first two months of this year, Epistar’s revenue totaled NT$4.28 billion, up 8.69 percent from the previous year, while Everlight’s revenue jumped 18.76 percent to NT$4.74 billion.
Nation’s reserves rise
The nation’s reserves amounted to US$417.83 billion as of the end of last month, an increase of US$1.92 billion from the previous month, the central bank said on Thursday. In a statement posted on its Web site, the bank attributed the increase to returns from the management of the reserves and the appreciation of the euro and other reserve currencies against the US dollar.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s